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Tips for Buying Foreclosures

August 18th, 2008 9:28 AM by Lehel Szucs

Tips for Buying Foreclosures

Buyers seeking a deal on a foreclosed property need to keep some basics in mind because the transaction isn’t simple and the competition may be still, says Pat Lashinsky, CEO of ZipRealty, which has more than 2,200 associates in 19 states.

"When you find a good deal, there are five or six or seven offers, and you're up against professional investors," Lashinsky says.

Here are some other things buyers should consider:
  • These homes aren’t giveaways. Typically, they are priced 10 to 15 percent below non-bank-owned properties.
  • Banks have their own selling strategies. Skilled at analyzing prices and market conditions, they'll often lower the price incrementally if a home hasn't sold after a month.
  • Bidding Wars are Possible. When the price is attractive, expect plenty of competitive offers.
  • Factor in fix-up money. Many of these properties are in bad shape.
  • Get pre-qualified. Banks won’t deal with prospective buyers who aren't.
  • Consider borrowing from the bank that owns the property. If the bank can hold the mortgage, it will sometimes agree to a lower price.

Source: San Francisco Chronicle, Carolyn Said (07/09/2008)
Posted in:General
Posted by Lehel Szucs on August 18th, 2008 9:28 AM

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